April 19, 2017
Stagflation
- Simultaneous rise in inflation and unemployment
Supply shock
- A rapid and significant increase in resource cost which causes the SRAS curve to shift
- Example: depreciation of the dollar, oil embargo
Natural rate of unemployment
- Frictional, seasonal, structural unemployment
Misery index
- A combination of inflation and unemployment in any given year
- Single digit misery is good
Vivian, your blog was not "Cringe-worthy" I found it actually helpful and insightful especially when you broke down what the misery index was. However, maybe a video would be more effective to help the reader better understand the ins and outs of stagflation.
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